Discount vid service takes hit after full-year projections disappoint
Redbox parent Coinstar, which has rocked the home entertainment market, saw profits surge nearly sevenfold to $54 million from $8.5 million last quarter.Revenue jumped 34% to $568 million driven by Redbox’ strong sales, kiosk installations and the strong performance of new releases. The company said consumers seemed to accept a price increase put through last October. Despite the strong quarter, the stock fell on the company’s lower than anticipated preview of full-year results. It said it expects to earn $4.60 a share on sales of $2.22 billion. Analysts were looking for Coinstar to earn $4.74 a share on $2.26 billion in revenue. The stock, which had a run up over the past few days on the heels of rival Netflix’s weak quarter, was down nearly 3% at $65.52 in late trading. Coinstar CEO Paul Davis touted the coming launch of a digital platform with Verizon, a pact that’s meant to challenge Netflix in its home streaming video turf. He said he also expects “one or two new business ventures” in 2012.